Nokia has announced a key leadership change as Pekka Lundmark steps down as CEO after five years. Justin Hotard, previously in charge of Intel‘s data center and artificial intelligence unit, has been appointed to take over the role effective April 1. This shift comes as Nokia ventures into new growth territories, particularly in AI and data centers.
Reports of Lundmark’s potential departure first emerged in September last year. Despite dismissals from both Lundmark and the company, the decision has now been confirmed. Lundmark’s leadership tenure saw Nokia navigating the turbulent waters of the 5G market, recovering from past missteps regarding Intel’s 5G chips. These efforts involved strategic cost-cutting and focusing on sectors like private wireless and data centers.
The decision to appoint Hotard underscored the board’s focus on data centers and AI. Nokia’s Chair, Sari Baldauf, emphasized this by stating that Hotard has “a strong track record of accelerating growth in technology companies along with vast expertise in AI and data center markets, which are critical areas for Nokia’s future growth.”
Nokia’s recent acquisition of optical networking specialist, Infinera, for $2.3 billion is indicative of its deeper plunge into AI data centers. This acquisition aims to capitalize on the global trend of AI investments. Hotard expressed his enthusiasm for the company’s strategic shift: “It is not just the connectivity inside the data center, but the connectivity across data centers.”
Additionally, Hotard emphasized the emerging opportunities Nokia can leverage in the global AI landscape: “As we look at the opportunity in AI, this gives us a great opportunity to differentiate as we move into the hyperscaler customers and the emerging neo-cloud customers that are coming up.”
The Infinera deal is anticipated to finalize within this quarter. This consolidation may position Nokia more robustly in the data center market and promises potential synergies across its growing business segments.